In details, we will find out both internal and external factors the internet has made effect on a business’s operation. Harvard Business Review did research about Office Depot when it made a decision to integrate its website and its physical stores to form a single, seamless retailing network. In condition of its existing catalog-sales operation providing much of service infrastructure and the professional call centre, more than 2000 trucks, the company was well equipped to process individual orders and deliver directly to its consumers. Besides, complete product, vendor, and customer and order information system allows Office Depot to support its 1825 stores and 30 warehouses. For example, a customer wants to buy a printer. He accesses to officedepot.com and makes research. He has information about price, features and then decides which the best model for him is. After that, he can order and ask for delivery or simply check for availability of the product in stock and go to pick it up in urgent situations. It is cheaper to reach the customers through the Website than the catalogs. Harvard Business Review pointed out that “OfficeDepot.com further complements the existing physical stores by providing added value to the company's 50,000 contract customers - large and midsize corporations that spend a great deal of money on office products”(RanJay Gulati and Jason Garino, May-June 2000). The company took advantage of the internet to cut cost in marketing, giving out update information of products, prices, and make order much easier. Therefore, the website allowed Office Depot to give discount and advanced services to customers. Office Depot is supposed to convince how the internet brings profit to a business. These digital technologies help e-businesses obtain resources-raw materials, plant, equipment and services-from suppliers through disintermediation; purchase products online, provide information for offline purchases; generate enquiries; relationship and brand building through reintermediation; collect information about customer demand, feedbacks, product trend, competition;… As a result, the businesses can cut cost in sales, purchasing, marketing, operating, and staffs in order to increase revenue.
On the other hand, the introduction of e-business infrastructure has changed the operating way in companies. Any businesses or customers can access to the Internet to receive most of virtual services. However, some companies want to keep their private information or allow to access to a limited part of information resources. Intranet, a private network within an organization, is now used to distribute internal information such as: staff phone directions, procedures, newsletters or training courses. A lot of businesses choose this advanced system because of high productivity, reduced costs, improved communications, and better and faster customer services. Besides, an extension of an intranet to include customers, suppliers and collaborators is extranet application. A business uses extranets when it only wants to share information within a secure environment. In addition, these applications also allow online ordering and distribution, help to reduce cost by cutting staff involved in the order process and create a closer relationship between the business and its stakeholders. Dell Computer, the world’s leading computer systems supplier, is a symbolic example for using extranet efficiently. James B. Ayers pointed out “Dell developed more than 19000 Premier Page extranet sites worldwide since the services were introduced.” And “Sales through Dell’s extranet surpassed $18 million per day by the first quarter of 1999. This accounted for 30 per cent of the company’s overall revenue.” (James B. Ayers, 2002). Besides, to ensure no illegal access to confidential information, the company can install firewalls, another e-business infrastructure, when creating an intranet or extranet.
Compared with the case of Office Depot above, Barnes and Noble, by contrast, established a completely separate company, namely Barnesandnoble.com. Being free from existing organization, the online outputs had many advantages in quickly decision making, flexibility, or quality management. Finally, Barnesandnoble.com struggled in spite of such benefits. RanJay Gulati and Jason Garino found out “In February, its stock price fell to an all-time low of 7.5, down more than 50% from its offering price of 18. By divorcing its on-line business from its established stores, Barnes &. Noble may have actually sacrificed more than it gained.”(RanJay Gulati and Jason Garino, May-June 2000). Consequently, a wrong e-business investment decision has been made, which concludes that there are not only positive impacts the Internet having on the businesses but also risks their directors have to manage. These risks possibly include website failure due to heavy visitor traffic, hackers penetrating the system, software problems, emailing customers without permission, or mistakes in customer services. On the other hand, to take advantage of the Internet, some businesses have to face barriers to adoption. They can include the lack of time, resources, skills, knowledge, reluctance of staff, and difficulty integrating IT systems. Such situations popularly come up in third World countries where a few people get used to computers, the Internet and trading online, or the technologic level is still low. These businesses are not able to get the same e-business opportunities as ones in developed countries.
In conclusion, to follow the ambition of global market and huge revenue, businesses in this dot-com era are absolutely influenced by the Internet which is available 24 hour per day, 7 day per week and linking millions of computers world wide. The Internet can change the way to operate in a business positively and bring considerable profits and convenience as well. However, their managers also need strategies to face e-business risks and get over barriers and challenges. In the future, advanced technologies certainly continue to gain the vital role of the Internet in doing business. For instance, modern security systems or extra policies can help to decrease risk and uncertain level when a manager decides to apply e-business infrastructure as a part of his company’s operating strategy. After all, speed, convenience, effectiveness and safety will come up with successful e-businesses. Drawbacks of the Internet will be limited also by developed techniques. Businesses have to take advantage of such digital technologies to make themselves different. The internet with its higher and higher popularity is and is going to be a great opportunity for the term of doing business.
Reference
Chaffey, D., 2007. E-Business and E-Commerce Management. 3rd ed. Prentice Hall, p.4
Chaffey, D., 2007. E-Business and E-Commerce Management. 3rd ed. Prentice Hall, p.14
RanJay Gulati and Jason Garino, May-June 2000, Get the Right Mix of Bricks and Clicks, Harvard Business Review, p.109
RanJay Gulati and Jason Garino, May-June 2000, Get the Right Mix of Bricks and Clicks, Harvard Business Review, p.108
James B. Ayers, 2002, Making supply chain Management work: Design, Implementation, Partnerships, Technology, and Profits. CRS Press, p.421, 422 available at
